Environmental Management Environmental Sustainability Report 2004

Basic Policy for the Environment and Actions to be Taken

The protection of the global environment is the most important issue for all forms of life, and it is our mission to bequeath a better environment to the next generation. We are determined to be friendly to the environment. For this purpose, we formulated the Basic Policy for the Environment and to promote "environmental management" in all aspects of our business activities. Basic Policy for the Environment: Promotion of Group Environmental Management The Kobe Steel Group will incorporate environmental considerations into all business activities and aim to become an advanced eco-friendly corporate group through the following: (1) Harmonious coexistence and cooperation with society (environmental communication); (2) All-out effort to reduce environmental burdens (environmental protection); and (3) Creation of new values in products, technologies, and services (environmental innovation). Actions to be Taken The Environmental Management Committee decides the actions to b taken by the entire Kobe Steel Group and promotes group environmental management. Presently, group environmental management is carrying out six specific actions: "Thorough environment-friendly production," "Contribution to environmental protection through products, technologies and services," "Disclosure of environment-related information," "Harmonious coexistence with the society," " Promotion of employee initiatives," and "Thorough risk control." [Statement of Chairman of the Environmental Management Committee] Under the direction of the President, I am at the head of environmental management.I am making an all-out effort to promote group environmental management. In Kobe Steel Group, each sector, company, and affiliated company conducts business under its own responsibility. Consequently, in promoting group management, it is essential for the Environmental Management Committee to take a leading part and reinforce cooperation within the group. Specifically, changes in environmental laws and regulations, requests from customers for products and services, and other environment-related information surrounding our business will be shared, and effective activities to reduce the environmental burden will be actively incorporated in the whole group. At any rate, the environmental management of our group has just started. I will decisively carry out environmental management step by step while keeping in mind that it is essential for each one of us, corporate members, to be constantly aware of the environment. It cannot be called environmental management unless each one of us takes initiative.. Takashi Matsutani Managing Director